CPK Dividend Type Payments

Chesapeake Utilities Corp dividend

Although CPK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Chesapeake Utilities Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Chesapeake Utilities Corp (CPK)
Bid Ask Last Change Volume P/E Market Cap
92.19 92.20 92.19 -1.01 37K 23 1.5B

CPK Dividend-Like Income Using Covered Calls

With CPK at 92.19, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 2.77 0.8
5% 4.61 1.3
10% 9.22 2.5

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On CPK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 95.00 1.00 92 1.1 2.80 (3.0%)
Sep 20 100.00 1.50 183 0.8 7.80 (8.5%)
5% Yield On CPK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 20 95.00 3.00 183 1.6 2.80 (3.0%)

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